# How It Works

Votre protects borrowers from liquidation risk by hedging collateral upfront rather than waiting for price drops. This ensures liquidation-free borrowing for months at a time.

Votre’s Offchain Intent Platform enables borrowers and providers to negotiate terms before executing onchain transactions, providing just-in-time liquidity provision.

# Coordination Phase (Offchain)

Borrowers request quotes from whitelisted providers for a return cap.
Solvers present pricing, and borrowers choose the best offer or select an existing one for a one-click experience.

flowchart TD
    User -->|Request Quotes| Providers[Providers]
    Providers -->|Show Quotes| User
    User -->|Request Execution| WinningProvider[Winning Provider]

  %% Styling Nodes
  classDef important fill:#ffcc00,stroke:#333,stroke-width:2px;
  classDef provider fill:#ff6666,stroke:#333,stroke-width:2px;

  class User important
  class WinningProvider provider

# Settlement Phase (Onchain)

Upon acceptance, a provider posts collateral (USDC) to guarantee the borrower’s upside.
Borrowers then post their collateral, which is swapped via Uniswap v3 to remove price risk.
Borrowers receive a loan amount based on the loan-to-value (LTV) ratio, while the remaining asset stays locked for settlement.

flowchart TD
    User -->|Post Collateral| TakerNFT[TakerNFT.sol]
    User -->|Create Offer| ProviderNFT[ProviderNFT.sol]

  %% Onchain Execution

    TakerNFT -->|Withdraw USDC| User
    ProviderNFT -->|Send USDC| WinningProvider
    WinningProvider -->|Delta| PerpsCEX[Perps / CEX]
    WinningProvider -->|Delta + Vega ProviderNFT| ProviderNFT

    %% Loan and Swap Flow
    User -->|ETH| Loans[Loans.sol]

    Loans -->|ETH| Swaps[Swaps.sol]
    Swaps -->|USDC| Loans
    Loans -->|USDC| User

    %% Rolling Mechanism
    Loans -->|Re-allocate| Rolls[Rolls.sol]
    Rolls -->|Extend| Loans
    Rolls -->|Matures| Keeper[Keeper]
    Keeper -->|At Maturity| Rolls



  %% DEX Interaction
  Swaps -->|ETH| DEX
  Swaps -->|USDC| DEX

  %% Additional Roll Offer Flow
  Rolls -.->|Create Roll Offer| WinningProvider
  WinningProvider -.->|Payout User / Provider| User

  %% Styling Nodes
  classDef important fill:#ffcc00,stroke:#333,stroke-width:2px;
  classDef provider fill:#ff6666,stroke:#333,stroke-width:2px;
  classDef external fill:#66ccff,stroke:#333,stroke-width:2px;
  classDef governance fill:#99cc99,stroke:#333,stroke-width:2px;

  class User important
  class WinningProvider provider
  class PerpsCEX external
  class MultiSig governance
  class ConfigHub governance

# Managing & Exiting Positions

Borrowers can roll (extend) their loans, adjusting terms as market conditions change.
“Auto-roll” functionality simplifies this process for assets that increase in value.
Positions are NFTs, meaning they can be sold, transferred, or settled early via “novations” and “unwinds”.

# Loan Repayment & Maturity

Loans must be repaid before maturity, with a 5-day grace period.
Once matured, collateral is divided based on market prices and trade terms.

Votre’s unique approach ensures borrowers have liquidation-free loans while providers efficiently hedge risk.